Long-term loans without a credit check are a good idea for people who have poor credit. They also may be sought by people who want a quick and easy loan transaction with minimal paperwork and process.
Types
Secured installment loans are often available without a credit check. With secured loans, you place money in a bank or credit union savings account. The bank holds the money as collateral, eliminating all risk for the bank. With the guarantee in place, the bank may waive a credit check. You can also take out long-term loans without a credit check by borrowing from your 401K or another retirement plan. No credit check is necessary because you're borrowing your own money. Long-term loans from friends and family also usually don't require a credit check.
Benefits
No-credit-check, long-term loans, such as those taken against retirement accounts, may not be reported to credit bureaus. People who want to avoid the appearance of taking on more debt may see this as an advantage.
Warning
Long-term loans that don't require a credit check may not show up on your credit report--but they still result in additional debt. Taking out several no-credit-check, long-term loans could compromise your financial situation and lead to excessive debt.
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